Makita Corporation TSE:6586

Makita : 1Q Financial Results

Published July 30, 2025 at 6:44 a.m. UTC

Source: MarketScreener

Makita Corporation

Consolidated Financial Results for the three months ended June 30, 2025

(IFRS Financial Information)

(English translation of "KESSAN TANSHIN" originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS

FOR THE THREE MONTHS ENDED JUNE 30, 2025 (Unaudited)

July 30, 2025

Makita Corporation

Stock code: 6586

URL: https://www.makita.biz/

Munetoshi Goto, President, Representative Director

Summary operating results of the three months ended June 30, 2025 (From April 1, 2025 to June 30, 2025)

CONSOLIDATED OPERATING RESULTS

Yen (millions)

Revenue ………………………………………

(%)

For the three months ended June 30, 2024	For the three months ended June 30, 2025
		(%)
	186,614	(3.8)
	26,069	22.1
	26,865	25.9
	19,281	24.7
	19,281	20.4
	26,936	(50.6)

193,932 5.1

Operating profit ……………………………… Profit before income taxes ……………………

21,344

21,338

30.9

33.0

Profit ………………………………………… Profit attributable to owners of the parent …… Comprehensive income ………………………

Profit attributable to

owners of the parent per share

15,459 38.4

16,010 43.1

54,574 3.6

Yen

(Basic) 59.51 72.07

(Diluted) - -Notes:

Amounts of less than one million yen have been rounded.
The table above shows the changes in the percentage ratio of revenue, operating profit, profit before income taxes, profit, profit attributable to owners of the parent, and comprehensive income against the corresponding period of the previous year.

SELECTED CONSOLIDATED FINANCIAL POSITION

Yen (millions)

	As of March 31, 2025	As of June 30, 2025
Total assets		1,106,525	1,089,628
Total equity		932,495	919,830
Equity attributable to owners of the parent		926,005	913,167
Ratio of equity attributable to owners of the
parent to total assets (%)		83.7%	83.8%

Note: Amounts of less than one million yen have been rounded.

Dividend Information
Cash dividend per share:
For the year ended March 31, 2025
Yen
For the year ending March 31, 2026 (Forecast)
Interim Year-end Total
Notes:
20.00 20.00
90.00 (Note)
110.00 (Note)
1. The forecast for cash dividend announced on April 28, 2025 has not been revised.
2. The projected amount of dividends for the year ending March 31, 2026 has not been determined yet. For further details, refer to "Explanation regarding proper use of business forecasts, and other significant matters" on page 2.

Consolidated Financial Performance Forecast for the year ending March 31, 2026 (From April 1, 2025 to March 31, 2026)

Yen (millions) For the year ending

March 31, 2026

Revenue ……………………………………………………………………	700,000	(%) (7.1)
Operating profit ……………………………………………………………	74,000	(30.9)
Profit before income taxes …………………………………………………	74,000	(31.8)
Profit attributable to owners of the parent …………………………………	54,000 Yen	(31.9)
Profit attributable to owners of the parent per share (Basic) ……………………………………	201.83

Notes:

Changes of the forecasts from the most recent disclosure: No
The table above shows the changes in the percentage ratio of revenue, operating profit, profit before income taxes and profit attributable to owners of the parent against the previous year.

Other

Changes in important subsidiaries during the period (Changes in specified subsidiaries accompanied by changes in scope of consolidation during the quarter): None
Changes in accounting policies and accounting estimates:
1. Changes in accounting policies required by IFRS: None
2. Changes in accounting policies other than 1: None
3. Changes in accounting estimate: None

(3) Number of shares outstanding (common stock) 1. Number of shares issued (including treasury shares): As of June 30, 2025:	280,017,520
As of March 31, 2025:	280,017,520
2. Number of treasury shares: As of June 30, 2025:	14,493,162
As of March 31, 2025:	10,976,752
3. Average number of shares outstanding: For the three months ended June 30, 2025:	267,552,241
For the three months ended June 30, 2024:	269,023,818

Makita's earnings releases (KESSAN TANSHIN) are not subject to an audit. Explanation regarding proper use of business forecasts, and other significant matters

The financial forecast given above is based on information as available at the present time, and includes potential risks and uncertainties. As a consequence of the factors above and other, actual results may vary from the forecasts provided above. Regarding the assumptions for the forecasts and other matters, refer to "SUPPLEMENT INFORMATION (CONSOLIDATED)", "1. Overview of operating results", "(3) Outlook for the fiscal year ending March 31, 2026" on page 3.
Cash dividend per share +
Total amount of purchased treasury shares during the year
Average number of shares outstanding
Makita's basic policy on the distribution of profits is to maintain the total return ratio(*) at 35% or greater, with a lower limit on annual cash dividends of 20 yen per share. However, in the event special circumstances arise, computation of the amount of dividends will be based on profit attributable to owners of the parent per share after certain adjustments. The Board of Directors plans to meet in April 2026 for a report on earnings for the year ending March 31, 2026. At the time, in accordance with the basic policy regarding profit distribution mentioned above, the Board of Directors plans to propose a dividend equivalent to at least 35% of total return attributable to owners of the parent. The Board of Directors will submit this proposal to the General Meeting of Shareholders scheduled for June 2026.

*Total return ratio =

Profit attributable to owners of the parent per share (Excluding special factors)

×100

SUPPLEMENT INFORMATION (CONSOLIDATED)

Overview of operating results
1. Overview of operating results of the three months ended June 30, 2025
  Looking at the international economic situation during the first quarter of the current fiscal year, the global trade environment remained unstable, due to the continuing implementation of the U.S. tariff. As a result, overall economic activity across various countries was sluggish. From a geopolitical aspect, the situations in Ukraine and the Middle East remain highly tense and volatile, and the global outlook continues to be uncertain.
  In the Group's consolidated business results for this period remained at the same level as the previous period on a foreign currency basis. However consolidated revenue decreased 3.8% year on year to 186,614 million yen due to the impact of foreign exchange rate. In terms of profit, operating profit increased by 22.1% year on year to 26,069 million yen (operating profit ratio: 14.0%) driven by an improvement in the cost ratio due to the reduction of various costs and the impact of foreign exchange rate. Profit before income taxes increased by 25.9% to 26,865 million yen (profit before income taxes ratio: 14.4%) and profit attributable to owners of the parent increased by 20.4% to 19,281 million yen (ratio of profit attributable to owners of the parent: 10.3%).
  Revenue results by region were as follows:
  Makita's consolidated revenue by geographic area is based on the customer's location for the periods presented.
  Accordingly, it differs from "Segment Information" on page 9.
  In Japan, sales of cordless OPE remained strong, partly due to the boost from new products of 40Vmax lithium-ion battery series (XGT), despite a challenging demand environment such as a decline in housing starts. As a result, revenue was 32,332 million yen, up 6.0% year on year.
  In Europe, sales of cordless OPE remained steady despite the effects of extreme weather. However, the building and construction market did not fully recover due to high interest rates. In addition, the yen also appreciated against the local currencies. As a result, revenue was 92,840 million yen, down 5.6% year on year.
  In North America, housing starts remained weak and market competition intensified. As a result, revenue was 19,102 million yen, down 11.7% year on year.
  In Asia, although demand for tools remained weak overall as the prolonged property recession in China has spread to neighboring countries, we have made efforts to expand sales of high-value-added products for non-residential sectors such as infrastructure and manufacturing industries. As a result, revenue was 11,817 million yen, up 9.9% year on year.
  In Central and South America, although sales of XGT series and cordless OPE remained strong, due to the impact of the yen's appreciation and weak local currencies, revenue was 11,569 million yen, down 9.4% year on year.
  In Oceania, despite efforts to expand sales of cordless products with a particular focus on the XGT series, the yen appreciated against the local currencies and revenue was 14,181 million yen, down 11.5% year on year.
  In the Middle East and Africa, construction and building demand was firm primarily in oil-producing countries. As a result, revenue was 4,775 million yen, up 24.1% year on year.
2. Overview of financial situation as of June 30, 2025
  Total assets decreased 16,897 million yen from the end of the previous fiscal year to 1,089,628 million yen. This decrease was mainly due to the decrease in "Cash and cash equivalents."
  Total liabilities decreased 4,232 million yen from the end of the previous fiscal year to 169,798 million yen. This decrease was mainly due to the reduction in "Borrowings."
  Total equity decreased 12,665 million yen from the end of the previous fiscal year to 919,830 million yen. This decrease was mainly due to the repurchase of treasury shares.
3. Outlook for the fiscal year ending March 31, 2026
There are uncertainties about the business environment surrounding us and developments in exchange markets.
Therefore, we have not reviewed the forecast of its consolidated financial performance for the year ending March 31, 2026, announced on April 28, 2025.

Consolidated Financial Statements (Unaudited)

Consolidated Statement of Financial Position

As of March 31, 2025		As of June 30, 2025
253,279		236,547
105,831		105,662
338,116		347,072
39,660		25,510
19,552		23,836
756,437		738,627
266,609		266,991
9,574		9,442
35,881		36,045
17,710		17,834
18,123		18,488
2,191		2,200
350,088		351,001
1,106,525		1,089,628

Yen (millions)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents………………………… Trade and other receivables……………………… Inventories………………………………………… Other financial assets……………………………… Other current assets………………………………

Total current assets……………………………… NON-CURRENT ASSETS:

Property, plant and equipment, at cost…………… Goodwill and intangible assets…………………… Other financial assets……………………………… Retirement benefit assets………………………… Deferred tax assets………………………………… Other non-current assets…………………………

Total non-current assets………………………… Total assets………………………………………………

Yen (millions)

As of March 31, 2025 As of June 30, 2025

LIABILITIES AND EQUITY LIABILITIES

CURRENT LIABILITIES:

Trade and other payables…………………………	54,628	56,785
Borrowings………………………………………	10,152	7,294
Other financial liabilities…………………………	6,739	6,783
Income taxes payable……………………………	13,003	11,079
Provisions…………………………………………	6,216	6,291
Other current liabilities…………………………	48,259	46,393
Total current liabilities…………………………	138,998	134,624

NON-CURRENT LIABILITIES:

Retirement benefit liabilities…………………… Other financial liabilities………………………… Provisions………………………………………… Deferred tax liabilities…………………………… Other non-current liabilities……………………… Total non-current liabilities……………………

Total liabilities………………………………………… EQUITY

Share Capital……………………………………

Capital Surplus…………………………………… Retained earnings………………………………… Treasury shares…………………………………… Other components of equity………………………

Total equity attributable to owners of the parent……… NON-CONTROLLING INTEREST……………………

Total equity…………………………………………… Total liabilities and equity………………………………

3,185

15,584

1,793

14,341

129

35,032

174,030

23,805

46,014

732,556

(21,470)

145,101

926,005

6,490

932,495

1,106,525

3,277

15,619

1,582

14,020

676

35,174

169,798

23,805

46,031

727,624

(36,876)

152,583

913,167

6,663

919,830

1,089,628

Consolidated Statements of Profit or Loss and Consolidated Statements of Comprehensive Income Consolidated Statements of Profit or Loss
Yen (millions)
193,932
(130,778)
63,154
(41,810)
21,344
1,731
(1,737)
21,338
(5,879)
15,459
186,614
(117,631)
68,983
(42,914)
26,069
2,377
(1,581)
26,865
(7,585)
19,281
For the three months ended June 30,
2024
For the three months ended June 30,
2025
REVENUE………………………………………………… Cost of sales……………………………………………… GROSS PROFIT…………………………………………… Selling, general, administrative and others, net…………… OPERATING PROFIT…………………………………… Financial income…………………………………………… Financial expenses………………………………………… PROFIT BEFORE INCOME TAXES……………………
Income tax expenses……………………………………… PROFIT……………………………………………………
Profit attributable to:
Owners of the parent……………………………………… Non-controlling interests……………………………………
Profit attributable to
owners of the parent per share (Basic)(yen)…………………
72.07
16,010
(551)
19,281
(1)
59.51
Consolidated Statements of Comprehensive Income
Yen (millions)
PROFIT……………………………..………………………
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Items that will not be reclassified to profit (loss)
Equity financial goods measured at fair value
through other comprehensive income (loss)……………… Total of items that will not be reclassified to profit (loss)……
Items that may be reclassified to profit or loss
Exchange differences on translating foreign operations…… Total of items that may be reclassified to profit (loss)……… Total other comprehensive income (loss), net of tax………… COMPREHENSIVE INCOME……………………………… Comprehensive income attributable to:
Owners of the parent……………………………………… Non-controlling interests……………………………………
For the three months ended June 30,
2024
15,459
958
958
38,157
38,157
39,115
54,574
54,784
(210)
For the three months ended June 30,
2025
19,281
(209)
(209)
7,864
7,864
7,656
26,936
26,764
173

Consolidated Statement of Changes in Equity

Yen (millions)

For the three months ended June 30, 2024 Equity attributable to owners of the parent

Other

Non-

Total

Share capital

Capital Surplus

Retained earnings

Treasury shares

components of equity

Total

Controlling interest

equity

Balance at April 1, 2024	23,805	45,607	669,359	(21,501)	150,886	868,156	7,050	875,206
Profit for the period			16,010			16,010	(551)	15,459
Other comprehensive income					38,774	38,774	341	39,115
Comprehensive income	-	-	16,010	-	38,774	54,784	(210)	54,574
Dividends paid			(12,644)			(12,644)		(12,644)
Purchase of treasury shares				(1)		(1)		(1)
Share-based payment
transaction		21				21		21
Total amounts of transactions with owners	-	21	(12,644)	(1)	-	(12,624)	-	(12,624)
Balance at June 30, 2024	23,805	45,628	672,725	(21,502)	189,660	910,316	6,840	917,156

For the three months ended June 30, 2025

Equity attributable to owners of the parent

Share capital

Capital Retained Treasury Surplus earnings shares

Other components of equity

Total

Non- Total

Controlling

interest equity

Yen (millions)

Balance at April 1, 2025	23,805	46,014	732,556	(21,470)	145,101	926,005	6,490	932,495
Profit for the period			19,281			19,281	(1)	19,281
Other comprehensive income					7,482	7,482	174	7,656
Comprehensive income	-	-	19,281	-	7,482	26,764	173	26,936
Dividends paid			(24,214)			(24,214)		(24,214)
Change of functional currency
of consolidated subsidiaries			1			1		1
Purchase of treasury shares		3		(15,406)		(15,403)		(15,403)
Share-based payment transaction		15				15		15
Transfer from other components of equity to
retained earnings			0		0	-		-
Total amounts of transactions
with owners	-	18	(24,213)	(15,406)	0	(39,601)	-	(39,601)
Balance at June 30, 2025	23,805	46,031	727,624	(36,876)	152,583	913,167	6,663	919,830

Consolidated Statements of Cash Flows

Yen (millions)

For the three months ended June 30,	For the three months ended June 30,
2024	2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Profit…………………………………………………………………… 15,459	19,281
Depreciation and amortization………………………………………… 7,550	7,283
Income tax expenses…………………………………………………… 5,879	7,585
Financial income and expenses………………………………………… 6	(796)
Loss (gain) on sales and retirement of property, plant and equipment… (271)	(4)
Decrease (increase) in trade and other receivables…………………… 7,445	2,201
Decrease (increase) in inventories……………………………………… 9,605	(4,528)
Increase (decrease) in trade and other payables……………………… 1,397	272
Increase (decrease) in retirement benefit assets and liabilities………… (12)	(143)
Other…………………………………………………………………… (10,651)	(9,664)
Subtotal…………………………………………………………… 36,407	21,486
Dividends received…………………………………………………… 389	450
Interest received……………………………………………………… 1,444	1,871
Interest paid…………………………………………………………… (466)	(310)
Income taxes paid……………………………………………………… (6,957)	(9,295)
Cash flows from operating activities……………………………… 30,817	14,202
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of non-current assets………………………………………… (4,683)	(4,960)
Proceeds from sales of non-current assets…………………………… 764	809
Purchase of investments……………………………………………… -	(410)
Proceeds from sales and redemption of investments………………… -	2
Payments into time deposits…………………………………………… (18,997)	(45,424)
Proceeds from withdrawal of time deposits…………………………… 9,612	59,497
Other…………………………………………………………………… 50	(21)
Cash flows from investing activities……………………………… (13,254)	9,494
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in short-term borrowings……………………… (9,851)	(3,171)
Purchase and sales of treasury shares, net……………………………… (1)	(15,403)
Cash dividends paid…………………………………………………… (12,644)	(24,214)
Repayment of lease liabilities………………………………………… (1,046)	(1,232)
Other…………………………………………………………………… 749	1,400
Cash flows from financing activities……………………………… (22,793)	(42,619)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS……………………………………………… 9,369	2,192
NET CHANGE IN CASH AND CASH EQUIVALENTS…………… 4,139	(16,731)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD… 196,645	253,279
CASH AND CASH EQUIVALENTS, END OF PERIOD…………… 200,784	236,547

Notes to Consolidated Financial Statements

Notes on the assumptions for a going concern: None Segment Information

Yen (millions)

For the three months ended June 30, 2024

Japan		Europe	North America	Asia	Total	Other	Elimi- nations	Consoli- dated
Revenue: External customers 34,849		99,122	22,420	7,580	163,971	29,961	-	193,932
Inter-segment ....	65,494	4,004	1,087	68,274	138,859	60	(138,919)	-
Total .........	100,343	103,126	23,507	75,854	302,830	30,021	(138,919)	193,932
Operating profit..........	4,359	7,224	229	6,711	18,523	2,379	442	21,344

Yen (millions)

Revenue: External customers .......... Inter-segment .... Total ......... Operating profit .........	For the three months ended June 30, 2025
	Japan	Europe	North America	Asia	Total	Other	Elimi- nations	Consoli- dated
	38,095	93,894	19,690	7,999	159,678	26,937	-	186,614
	73,176	5,284	1,822	67,637	147,919	82	(148,001)	-
	111,271	99,177	21,512	75,637	307,597	27,018	(148,001)	186,614
	9,112	10,171	327	6,012	25,622	1,864	(1,417)	26,069

SUPPORT DOCUMENTATION (CONSOLIDATED)

Consolidated Financial Results and Forecast

Yen (millions)

For the three months ended June 30,

2024

For the three months ended June 30,

2025

(%)

REVENUE…………………………………………………… 193,932 5.1

Domestic………………………………………………… 30,515 1.8

Overseas………………………………………………… 163,417 5.8

Operating profit……………………………………………… 21,344 30.9

Profit before income taxes…………………………………… 21,338 33.0

Profit attributable to owners of the parent…………………… 16,010 43.1

Profit attributable to owners of the parent per share (Yen)… 59.51

Number of Employees……………………………………… 17,589

(%)

186,614 (3.8)

32,332 6.0

154,283 (5.6)

26,069 22.1

26,865 25.9

19,281 20.4

72.07

17,732

Yen (millions)

For the year ended March 31, 2025

For the year ending March 31, 2026 (Forecast)

		(%)		(%)
REVENUE……………………………………………………	753,130	1.6	700,000	(7.1)
Domestic…………………………………………………	127,168	3.2	131,000	3.0
Overseas…………………………………………………	625,962	1.3	569,000	(9.1)
Operating profit………………………………………………	107,038	61.8	74,000	(30.9)
Profit before income taxes……………………………………	108,477	69.5	74,000	(31.8)
Profit attributable to owners of the parent……………………	79,338	81.6	54,000	(31.9)
Profit attributable to owners of the parent per share (Yen)…	294.90		201.83
Number of Employees………………………………………	17,641		-

Notes:

Please refer to 1. Overview of operating results Section 3 "Outlook for the fiscal year ending March 31, 2026" on page 3.
The table above shows the changes in the percentage ratio of revenue, operating profit, profit before income taxes, and profit attributable to owners of the parent compared to the corresponding period of the previous year.

Consolidated Revenue by Geographic Area

Yen (millions)

	For the three months ended June 30, 2024		For the three months ended June 30, 2025	For the year ended March 31, 2025
		(%)	(%)	(%)
Japan …………………………………	30,515	1.8	32,332 6.0	127,168 3.2
Europe ………………………………	98,379	10.2	92,840 (5.6)	371,798 4.3
North America ………………………	21,644	(12.8)	19,102 (11.7)	83,919 (10.4)
Asia …………………………………	10,752	(3.3)	11,817 9.9	45,031 (2.4)
Central and South America …………	12,774	14.0	11,569 (9.4)	50,687 2.0
Oceania ………………………………	16,022	11.3	14,181 (11.5)	55,802 (1.0)
The Middle East and Africa …………	3,846	4.2	4,775 24.1	18,726 18.3
Total …………………………………	193,932	5.1	186,614 (3.8)	753,130 1.6

Notes:

The table above sets forth Makita's consolidated revenue by geographic area based on the customer's location for the periods presented. Accordingly, it differs from "Segment Information" on page 9.
The table shows the changes in the percentage ratio of revenue compared to the corresponding period of the previous year.

Exchange Rates

Yen

For the three months ended June 30,

2024

USD/JPY ……………………… 155.85

EUR/JPY ……………………… 167.85

RMB/JPY ……………………… 21.47

For the three months ended June 30,

2025

144.59

163.81

19.99

For the year For the year ended ending

March 31, March 31, 2026

2025 (Forecast)

152.62 140

163.88 160

21.11 19.5

Production Ratio (unit basis)

For the three months ended June 30,

2024

Composition ratio

Domestic 7.2%

Overseas 92.8%

For the three months ended June 30,

2025

Composition ratio

7.7%

92.3%

For the year ended

March 31, 2025

Composition ratio

7.4%

92.6%

Consolidated Capital Expenditures, Depreciation and Amortization, and R&D costs

Yen (millions)

For the three months ended June 30,

2024

Capital expenditures …………… 4,683 Depreciation and amortization … 6,366 R&D costs …………………… 3,642

For the three months ended June 30,

2025

4,960

6,088

3,919

For the year For the year ended ending

March 31, 2025 March 31, 2026

(Forecast)

17,594 28,000

24,934 25,000

15,115 16,500